The negative effects of the recent harsh fuel price increases are beginning to hit home as taxi drivers operating from Tema to the Accra metropolis contemplate finding other jobs.
Patronage of their services has drastically reduced since they increased their fares to 8,000 cedis to adjust to the increases in fuel prices. The old price was 5,000 cedis.
As a result of this situation, they say they are unable to break-even or make the required ‘sales’ for their car owners and even make enough money for the daily upkeep of their families.
Charles Osei, Vice-Chairman of the Odor Taxi and Hiring Association, under the Ghana Private Roads and Transport Union (GPRTU) at the Neoplan Station believes the low patronage is because passengers cannot afford the current fares. “Most of the drivers are now able to make only two trips to Tema and back to Circle a day and this situation is not helping them at all. In addition, the car owners also insist on their sales and this is having a serious toll on the drivers”, Osei told Public Agenda.
His solution to the current problem is that government should increase workers salaries.
Solution
A visit to Tema on Tuesday revealed that the situation was no different as vehicles were packed in long queues waiting for passengers. Samuel Y. Asante, the Branch Secretary of the Tema Hiring Branch attributed the situation to less money in the system, saying that people do not want to use the small money they have on transportation.
According to Asante, passengers were satisfied with the new fares but were trying to adjust to the situation. He, like Osei, believes the solution to their problem is government increasing salaries.
“If a person working in the Ministries earns a minimum wage of 7,150 cedis how can he afford to board a taxi from Tema to Kwame Nkrumah Circle or Madina or Lapaz which cost 8,000 cedis? Asante asked.
While complaining about low patronage of their services because people cannot afford, Osei is also unhappy about the current fares. Government should allow the GPRTU to charge more than 40 per cent of the previous fares, he told Public Agenda.
Government should have consulted all stakeholders in the transport sector before increasing the price of fuel so that realistic fares would be arrived at. This would have helped transport owners to break-even, he said, adding that currently at the new price of 8,000 cedis, drivers under the Association are not breaking-even, and cars with high fuel consumption are feeling the pinch of the situation most.
The government stipulated 40 per cent increase in transport fares is inadequate because it is not only fuel that should determine transport fares, other costs including that of spare parts should be taken into account, he said.
Government can help the drivers solve this problem by also controlling the prices of spare parts, he added.
As at 9.00 am on Monday, when Public Agenda visited the Tema Neoplan station, it was packed with vehicles waiting for passengers. A rather unusual scene at this time of the day, before the increases were announced.
Osei hinted that most of the drivers are contemplating getting out of the business if things do not pick up soon. The drivers’ concerns should be given the needed attention as quickly as possible, since there are over hundred cars under the Association and if majority of their members go out of operation as they are currently thinking of, government revenue in terms of income taxes would also go down.
He said another reason why they should be in business is because they offer services to tourists and citizens who cannot afford the services of the big car hiring companies.
